Event: On April 11, 2025, EZVIZ Network released the 2024 annual report and the first quarter report of 2025, achieving operating income of 5.442 billion yuan in 2024, a year-on-year increase of 12.41%; The net profit attributable to the parent company was 504 million yuan, a year-on-year decrease of 10.52%. In the first quarter of 2025, the operating income will be 1.380 billion yuan, a year-on-year increase of 11.59%; The net profit attributable to the parent company was 138 million yuan, a year-on-year increase of 10.42%.

Create a PaaS IoT cloud platform service model, and the user payment rate continues to increase. As a global IoT cloud platform service provider, EZVIZ Cloud serves customers by building multiple data centers + nearby service points.

EZVIZ Cloud focuses on visual technology and co-creates a full-stack open PaaS IoT cloud platform service model with AI audio and video as the core with B-end developer customers. In 2024, the company's cloud platform services will achieve revenue of 1.052 billion yuan, a year-on-year increase of 22.87%; the number of monthly active users was 65,528,100, a year-on-year increase of 20.31%; Based on monthly active activity, the per capita payment was 16.06 yuan, a year-on-year increase of 2.12%. Among them, the C-end value-added service revenue was 516 million yuan, a year-on-year increase of 19.50%, and the per capita payment was 168.59 yuan, a year-on-year increase of 1.30%; The customer service revenue of B-end developers was 536 million yuan, a year-on-year increase of 26.30%, and the per capita payment was 47,916 yuan, a year-on-year increase of 12.73%.

Focusing on AI terminals and embodied intelligence, the product matrix continues to expand. 1) Smart home cameras are the company's cash cow business, with revenue of 2.948 billion yuan in 2024, sales of more than 18.31 million units, and shipments ranking first in the world. The company has released a number of new products such as S10 video call camera, movable pet care camera TAMO, and eye bean smart home camera, promoting the upgrade of smart home cameras to visualization, scene and intelligence. 2) As the second growth curve, smart home will achieve revenue of 748 million yuan in 2024, a year-on-year increase of 47.87%. EZVIZ smart locks have entered the forefront of the industry with excellent face recognition and visual capabilities, and the Y3000 series has become a hot seller. 3) As an incubation business, intelligent service robots will achieve revenue of 166 million yuan in 2024, a year-on-year increase of 265.12%. The company focuses on embodied robots, actively practices and develops, and continues to polish household cleaning robots and companion robot products.

The ecosystem has been upgraded to "2+5+N" to build a "panoramic" smart IoT life. In 2024, the EZVIZ ecosystem will be fully upgraded to "2+5+N", from the single core of the Internet of Things cloud platform to the AI + EZVIZ IoT cloud dual-core drive, and the five core self-developed product lines of AI interaction, such as smart home cameras, smart homes, intelligent service robots, intelligent control and smart wearables, will be openly accessed through the ecological controller for N ecological products under the ecology of environmental control, intelligent audio and video and other subsystems. The EZVIZ blue ocean model developed by the company can realize edge computing and cloud computing collaboration, and has three systematic AI capabilities: development openness, intelligent interaction and embodied agency.

Investment suggestion: EZVIZ Network in-depth layout of AI terminals, embodied intelligence, Internet of Things cloud platform, with the upgraded "2+5+N" ecosystem to continue to iterate existing products, in the medium and long term in the AI + EZVIZ IoT cloud dual-core drive or will continue to benefit, the company's revenue from 2025 to 2027 is expected to be 6.258, 73.85, 8.862 billion yuan, net profit attributable to the parent company is 7.17, 9.67, 1.31 billion yuan respectively, April 11, 2025 The daily closing price corresponds to the P/E ratios of 40X, 30X, and 22X, maintaining the "Recommended" rating.

Risk warning: technology development is uncertain, and industry competition is intensifying.